California Gov. Gavin Newsom has recently said he opposes the Billionaire Tax Act. (Wally Skalij/Los Angeles Times/Getty Images)
Those concerns come as income migration data already shows money moving out of several traditionally blue states.
IRS figures indicate several traditionally blue states losing billions of dollars in adjusted gross income — the income used to calculate federal taxes — as residents move to lower-tax states, particularly across the South and Sun Belt.
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Steve Moore, co-founder of Unleash Prosperity, said California’s tax base will continue to erode as more high-profile tech billionaires relocate ahead of the proposed wealth tax.
"California's tax base took a massive hit at the end of last year. Silicon Valley billionaires left the state, taking their wealth and future wealth with them," Moore said, attributing those moves to the proposed 2026 Billionaire Tax Act, which targets the state’s ultra-wealthy.
"These business tycoons are running to states like Florida and Texas because of lower taxes, economic freedom and future economic prosperity," he said, describing it as "voting with their feet."
"It is common sense for business leaders to pick places for future financial success rather than economic suffocation," he added.
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Texas Gov. Greg Abbott's office told Fox News Digital that he will continue welcoming businesses and residents fleeing California to his state. (David Paul Morris/Bloomberg via Getty Images)
Even as Newsom raises alarms, Republican governors in Florida and Texas say they are already benefiting from businesses and residents leaving California.
Texas Gov. Greg Abbott’s office echoed that sentiment, saying the state continues to draw companies seeking lower taxes and a lighter regulatory environment.
"People and businesses vote with their feet, and they are continually choosing to move to Texas more than any other state," Abbott spokesman Andrew Mahaleris said.
He added that Texas’ lack of corporate and personal income taxes and its predictable regulatory climate have made it an attractive destination for companies weighing a move out of California.
Florida Gov. Ron DeSantis called the California proposal "economic insanity."
Amanda covers the intersection of business and politics for Fox News Digital.
https://www.foxnews.com/politics/tax-fight-puts-california-collision-course-billionaires-leave-red-states